The Functions of Goals

Despite the problems associated with the goal model approach, the concept of organisational goals serves a number of important functions.

■ Goals provide a standard of performance. They focus attention on the activities of the organisation and the direction of the efforts of its members.

■ Goals provide a basis for planning and management control related to the activities of the organisation.

■ Goals provide guidelines for decision-making and justification for actions taken. They reduce uncertainty in decision-making and give a defence against possible criticism.

■ Goals influence the structure of the organisation and help determine the nature of technology employed. The manner in which the organisation is structured will affect what it will attempt to achieve.

■ Goals help to develop commitment of individuals and groups to the activities of the organisation. They focus attention on purposeful behaviour and provide a basis for motivation and reward systems.

■ Goals give an indication of what the organisation is really like, its true nature and character, both for members and for people outside of the organisation.

■ Goals serve as a basis for the evaluation of change and organisation development.

■ Goals are the basis for objectives and policies of the organisation.